Commercially reasonable--whose responsibility is it?

Area of Science:

• Healthcare Administration
• Health Law
• Business Management

Background:

• Federal regulations mandate that hospital-physician business arrangements meet a commercially reasonable standard.
• This standard requires arrangements to be independently justifiable from a business perspective, not reliant on physician referrals.

Purpose of the Study:

• To provide hospital executives with a framework for assessing the commercial reasonableness of business arrangements.
• To empower executives to conduct initial due diligence using internal resources.

Main Methods:

• Development of a comprehensive checklist for evaluating key operational, clinical, and financial considerations.
• Guidance on self-assessment prior to engaging external expertise.

Main Results:

• Hospital executives can proactively address many aspects of commercial reasonableness.
• A structured checklist facilitates a thorough internal review process.

Conclusions:

• Internal assessment using a detailed checklist is a crucial first step for hospitals.
• This approach supports compliance with federal regulations regarding hospital-physician arrangements.